The tax assessor's information is not good enough. It may never have been accurate. Assessments are done for tax purposes, not to accurately determine the market value of a property.
Besides, if you're looking at doing a rehab, you're approaching it from the wrong direction.
If you're looking at a rehab, the first question is: What will the property be worth after it's fixed up?
Second question: What are my rehab costs going to be?
Subtract the rehab costs from the ARV (after repair value). (I'm oversimplifying a bit.) The number you come up with is the most you can spend. You probably should pay quite a bit less.
Note that when you ask the first question--what the property will be worth after it's fixed up--you're taking into consideration land value as well as the value of improvements--the house itself.
But always, always, always follow that process. Begin at the end: What it'll be worth. Then reduce it to account for repairs, financing, risks, hassles, transaction costs, and so on.
Hope that helps.
Normally the county Tax Assessor's evaluation of the value of the land is on the low side, as is their view of the value of the Real Estate. Market value is higher. My opinion is that given the location,it would be wise for you to have a CMA done to assit in determining value, comparing other residential lots that have sold, in the immediate area to your property . If you want to go further, a licensed appraiser would be a good choice as their evauation of value is the most accurate.
If you need help in identifying the true value please contact me directly with the exact address and I will be happy to give you the value.
Warm regards, Endre
All of that data is available to you via my web site, or I can email it to you for your review.
Blogging at: http://TheBremnerGroup.com/blog
You should contact an appraiser familiar with the area where the property is located. There are two common methods used to determine the land, or site value. Sales comparison method and extraction method.
The sales comparison method would involve finding comps of similar land properties, with or without similar amenities such as size, location, utilities (existing or available), usage, accessability, terrian, and perminant affixed improvements such as fencing, landscaping, driveways, building foundations, etc., and making necessary market adjustments for notable differences and market area concerns such as environmental and/or external obsolesences.
The extraction method would involve appraising the property "as is" using comps of similar properties with similar amenities, including structures similar, lesser then, or greater then the existing structure of the property being appraised, and making necessary market adjustments for differences including quality and condition, and developing the cost approach to determine the replacement/reproduction cost of improvements then extracting out the land value, which would be the difference between appraised value and replacement/reproduction cost less, depreciation of existing useful improvements.
You can contact me if you need a referral for such an appraiser.
If you are in need of an expert for this, please contact me anytime.
J White Properties
Keller Williams Beverly Hills